Managing employees in a small or medium-sized enterprise (SME) comes with its fair share of surprises. From unexpected absences to internal team conflicts, employee-related challenges can have a big impact on your business’s day-to-day operations. Here are 10 common employee challenges that UK SMEs face and practical solutions for overcoming them.
1. Unexpected Employee Absences
Sudden sick days or emergency leave can disrupt your business, especially in a small team where every role counts.
Solution: Implement a clear absence policy and cross-train your staff to ensure business continuity. By ensuring that more than one person is trained to handle critical tasks, you can keep things running smoothly during absences.
2. Resignation Without Notice
An employee leaving without notice can be a major setback, especially if they hold a key position.
Solution: Maintain an active talent pipeline by networking and keeping a list of potential candidates. Regularly update job descriptions so you’re ready to recruit quickly. Consider temporary or contract workers to fill any immediate gaps.
3. Resistance to Change
When you introduce new processes, systems, or technologies, employees may resist the change, slowing progress and creating frustration.
Solution: Involve your team early in the decision-making process and offer the necessary training to ease the transition. Communicate clearly how these changes will benefit both the employees and the company.
4. Underperformance
Sometimes, a high-performing employee may start underachieving, which can affect overall team morale and productivity.
Solution: Tackle the issue promptly with a one-to-one meeting. Identify the reasons behind the drop in performance and set clear, measurable targets for improvement. Offer support and development opportunities where needed.
5. Internal Team Conflicts
Disagreements between team members can harm productivity and create a toxic work environment if not addressed.
Solution: Encourage open communication and have a clear policy for conflict resolution. Act as a neutral mediator, encouraging those involved to find a mutually beneficial solution. Foster a culture of respect and collaboration to prevent conflicts from escalating.
6. Overstepping Boundaries
Employees may take advantage of company policies, such as taking extended breaks, abusing flexible working hours, or misusing company resources.
Solution: Ensure that your company policies are clearly outlined in an employee handbook and consistently enforced. Conduct regular reviews to ensure policies reflect the needs of your growing business.
7. Requests for Pay Rises at Inappropriate Times
An employee requesting a pay rise when the business is facing financial pressure can be difficult to manage.
Solution: Be open about the company’s financial situation and explain your compensation structure. If a raise isn’t possible, consider offering non-monetary benefits like flexible working hours, professional development opportunities, or extra holiday days.
8. Personal Issues Affecting Work Performance
Sometimes, personal matters such as health concerns or family problems can impact an employee’s performance at work.
Solution: Create a supportive environment where employees feel comfortable discussing personal challenges. Offer flexible working arrangements or consider Employee Assistance Programmes (EAPs) to help employees through difficult times.
9. New Managers Struggling to Lead
Promoting employees from within is great for morale, but it can lead to challenges if new managers lack the leadership skills needed for their role.
Solution: Provide leadership training and ongoing support for newly promoted managers. Regular feedback sessions and mentorship can help them develop the skills they need to manage effectively.
10. Complaints About Excessive Workload
If you start receiving complaints about excessive workloads, it could be a sign of burnout or inefficient processes.
Solution: Review workloads regularly to ensure they are evenly distributed. Consider bringing in temporary staff during peak periods and encourage good time management practices. Offering support and recognising hard work will also boost morale.
How can we help?
Unexpected challenges with employees are part of running a business, but with the right approach, you can overcome these hurdles and keep your team motivated and productive. At the SME Centre of Excellence, we provide dedicated support to SMEs, helping you manage workforce challenges and build a resilient business.
Need help managing your SME’s employees? Contact us today to explore our tailored support services for small and medium-sized businesses.
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